Feyenoord coach Ronald Koeman will remain at De Kuip next season after signing a one-year contract extension.

Koeman, 48, took charge of Feyenoord last July and was tasked with transforming the fortunes of the former European giants, who struggled badly in the 2010-11 campaign and finished 10th in the Eredivise standings.

The former Netherlands international, who ended his playing career with Feyenoord in 1997, has guided the club to fifth in the table and they are currently seven points off league leaders AZ.

"The conclusion after these first few months is that everything clicks on all fronts between Ronald and Feyenoord," technical director Martin van Geel told the club's official website.

"We are doing good work and giving Feyenoord something to build on. The head coach is the key figure and continuity is important."

Van Geel claimed Koeman would receive a "significant upgrade" to his contract, but insisted Feyenoord have not broken the bank in order to extend their manager's deal.

"We have definitely remained within our financial limits," Van Geel said. "We have a deal everyone can be happy with."

Former PSV and Benfica boss Koeman admitted he was delighted to put pen to paper, saying: "I'm really enjoying myself at Feyenoord and am glad we have found agreement. We see a lot of opportunities to grow with this talented group."